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US dollar depreciation: EUR USD, USD JPY and AUD USD analysis IG International

Posted on March 23rd, 2023

Additionally, the ECB has expressed concern regarding the potential adverse impact of US tariff policies on European economic growth. Market consensus indicates expectations for an additional two to three rate reductions before year-end. IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such. Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc.

Slight Bounce by the Dollar Despite Weaker GDP

You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of oanda review losing your money. Past performance is not necessarily indicative of future results. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.

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However, forex is a volatile market and currency values fluctuate continuously. So, whether EUR and USD are safe currencies will always depend on liquidity, volatility and economic events (such as Brexit). EUR/USD (or euro-dollar) does not have a very long history, as the euro only came into existence as a digital currency in January 1999 and a physical currency in 2002. However, this young forex pair quickly became the most popular by trading volume. The best time to trade EUR/USD is when both markets are open (between 1pm and 4pm UK time). fx choice review During this open period, EUR/USD tends to be more liquid and spreads are generally tighter.

Outside of these times, there tends to be more volatility, which could also provide opportunities to profit. The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure. Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd. The best EUR/USD trading strategies to use will depend on your personal trading style.

Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Gold prices pared some of their early-week losses and hovered near $3,250 on Tuesday afternoon, supported by a cautious market tone and softer-than-expected US April CPI data, which helped XAU/USD stabilise. IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No.

While the Fed looked to increase interest rates in response to a strengthening economy after 2008, the ECB had to keep interest rates low and introduce a quantitative easing programme to boost spending in Europe. When trading euro-dollar, you should watch out for economic reports, political events and monetary policies that move the price of EUR/USD. Recurring events such as European Central Bank (ECB) and Federal Reserve Bank announcements, as well as developments concerning Brexit and US-China trade discussions impact the price of euro-dollar. One of the most closely watched currency pairs today is EUR/USD – also called the euro-dollar. This forex pair is particularly interesting in light of Brexit and the US-China tensions. Find out how you can take advantage of EUR/USD price movements with IG.

There are many forex strategies to choose from, enabling you to determine when it’s time to enter and exit a trade. These include the RSI indicator strategy, momentum indicator strategy and breakout trading strategy. Open a dowmarkets free, no-risk demo account to stay on top of market movement and important events.

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• Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.
• The atypical surge in long-term US treasury yields corroborates this assessment.
• IG is not a financial advisor and all services are provided on an execution-only basis.
• We have not established any official presence on Line messaging platform.
• Countries started to do more business with each other after the euro’s introduction due to the lack of currency risk, with the resultant rise in gross domestic product (GDP) growth across the eurozone causing EUR/USD’s price to surge.

Support levels are anticipated at approximately 1.12, with a critical secondary support at the 200-day simple moving average (SMA) of 1.07. However, several counterbalancing factors may constrain the euro’s upward trajectory. The European Central Bank (ECB) implemented a 25-basis-point interest rate reduction earlier this month, citing persistent disinflationary trends.

The euro – now used by 19 EU countries – is the second largest, with the Japanese yen (JPY) in third place and the pound (GBP) in fourth. Get The Week Ahead, our free rundown of the coming week’s market-moving events and forex pairs to watch, delivered to your inbox every Sunday. Stay on top of upcoming market-moving events with our customisable economic calendar.

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 71% of retail client accounts lose money when trading CFDs, with this investment provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform.

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• The price of gold managed to find support slightly above last week’s low as the US dollar rally seems to be momentarily running out of steam.
• Consequently any person acting on it does so entirely at their own risk.
• The years 2008 to 2014 were marked by economic crises – first in the US and then in the eurozone – which played havoc with EUR/USD’s price.

Market pricing currently reflects a 97% probability of a Reserve Bank of Australia (RBA) rate reduction at its 20 May meeting. Traders anticipate four to five 25-basis-point (bp) cuts by year-end, potentially bringing cash rates below 3%. Should the RBA adopt a more measured approach to monetary easing, this would provide additional support for the Australian dollar. Technical analysis reveals EUR/USD within a robust ascending channel with medium-term potential to target the 1.19 level, assuming the current rally matches the magnitude observed between September 2022 and July 2023. However, considering the steep year-to-date appreciation, a consolidation phase may precede further advances.

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Your profit or loss will depend on how accurate your prediction is, meaning it is possible to profit whichever way the market moves. The atypical surge in long-term US treasury yields corroborates this assessment. Forex markets don’t close very often, but positions can make or lose money every night. Crunch the numbers using our data including forex rates, or prices, spreads, and swap rates for holding positions overnight. Countries started to do more business with each other after the euro’s introduction due to the lack of currency risk, with the resultant rise in gross domestic product (GDP) growth across the eurozone causing EUR/USD’s price to surge. The years 2008 to 2014 were marked by economic crises – first in the US and then in the eurozone – which played havoc with EUR/USD’s price.

Open a free, no-risk demo account to stay on top of forex movement and important events. Technical analysis indicates AUD/USD at a pivotal juncture as it attempts to breach its horizontal consolidation range and establish position above the 200-day moving average (SMA). A decisive break above this moving average may signal completion of the corrective phase, with potential for extension toward the 0.67 level. Apprehension regarding US economic resilience continues to intensify, evidenced by deteriorating employment statistics and consumer confidence metrics. Concurrently, Tokyo core inflation has accelerated to 3.4%, reaching its highest level in two years.

EUR USD Overview: Price, News and How to Trade IG International

Posted on March 24th, 2023

Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. You should familiarise yourself with these risks before trading on margin. Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment. Use this to see how IG client accounts with positions on this market are trading other markets.

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Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

• Despite this significant retreat, further downside potential remains as current levels still substantially exceed those observed in 2021.
• Use this to see how IG client accounts with positions on this market are trading other markets.
• Given China’s position as Australia’s predominant trading partner, Chinese economic conditions significantly influence AUD trajectories.
• However, considering the steep year-to-date appreciation, a consolidation phase may precede further advances.

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Our fundamental assessment indicates sustained yen appreciation potential, albeit with intermittent retracements. The forthcoming Euro Area Q1 GDP data and inflation flash estimates will provide critical insights into the currency pair’s directional bias. The US dollar has declined 8.4% year-to-date as investor confidence weakens and recession concerns mount, creating trading opportunities in major currency pairs. Open a free, no-risk demo account to stay on top of index movement and important events.

The information in this site does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. The percentage of IG client accounts with positions in this market that are currently long or short. Who would have thought that within a matter of weeks US stock indices would be trading back in positive territory for the year? The Dow Jones Industrial Average is  closely following suit but the small cap Russell 2000 still lags behind, trading around 5% lower when compared to the beginning of the year. You could say that the euro and the US dollar are safe currencies, because both have traditionally been viewed as ‘safe havens’.

The same happened when Trump won the US elections later that year. The uncertainty surrounding the final Brexit deal continues to affect euro pricing, with Britain expected to leave the EU in October 2019. A ‘hard Brexit’ (no deal) is likely to have a negative impact on the euro, whereas a ‘soft Brexit’ (in which the UK and EU maintain close ties) could limit the impact or even strengthen fxcm review the euro. The US dollar has experienced a pronounced depreciation recently. The dollar index (DXY) is poised to record its weakest monthly performance since November 2022, declining 8.4% year-to-date against a basket of major currencies. Despite this significant retreat, further downside potential remains as current levels still substantially exceed those observed in 2021.

Data is calculated to the nearest 1%, and updated automatically every 15 minutes. The Australian dollar encountered considerable downward pressure in early April amid tariff-induced market volatility. Given China’s position as Australia’s predominant trading partner, Chinese economic conditions significantly influence AUD trajectories. Substantive progress in US-China trade negotiations could catalyse further AUD/USD appreciation. Additionally, recent consumer price index (CPI) data indicates a 0.9% increase in the first quarter of 2025, up from the previous quarter’s 0.2%.

Tastyfx is not a registered broker-dealer with the Securities and Exchange Commission (SEC), a member of the Financial Industry Regulatory Authority (FINRA), or a member of etoro review the Securities Investor Protection Corporation (SIPC). 24-hour access, high liquidity, and low costs can make forex products a good fit for your portfolio. For more info on how we might use your data, see our privacy notice and access policy and privacy webpage. Improve your trading skills by working through interactive courses on the IG Academy app.

• Open a live account to get data on your trading with our Trade Analytics tool.
• Market consensus indicates expectations for an additional two to three rate reductions before year-end.
• These include the RSI indicator strategy, momentum indicator strategy and breakout trading strategy.
• Open a free, no-risk demo account to stay on top of market movement and important events.

On a 12-month basis, CPI rose 2.4%, slightly higher than market expectations. The euro has demonstrated exceptional performance, appreciating 5.5% against the US dollar in the previous month. As confidence in US assets wanes, the euro — the second largest global reserve currency — has attracted significant capital flows. European equities have similarly gained momentum as global investors pursue portfolio diversification strategies. Proposed fiscal expansions in infrastructure and defence have enhanced Euro area growth projections. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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We advise you to carefully consider whether trading is appropriate for you based upon your personal circumstances as you may lose more than you invest. The information presented does not take into account your particular investment objectives, financial situation and/or needs and is not a substitute for obtaining professional advice from a qualified person, firm, or corporation, where required. You are advised to perform an independent investigation of any transaction you intend to execute in order to ensure that transaction is suitable for you.

Information presented by tastyfx should not be construed nor interpreted as financial advice. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information.

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing. You can profit from trading EUR/USD if you trade the currency pair via spread bets or CFDs. If you think that EUR is going to increase against USD, you would buy the pair (go long). If you think that the euro will decrease in value against the US dollar, you would sell the pair (go short).

Slight Bounce by the Dollar Despite Weaker GDP

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you’re a beginner or an expert, find the right partner to navigate the dynamic Forex market. Markets roared back to life as the US and China hit pause on their escalating trade war, with both sides emphasizing mutual respect and dignity. But it wasn’t the fine print that moved markets—it was the mood shift. Investors rushed back into risk assets, betting that the worst might be behind us.

Explore current forex opportunities as USD volatility compresses, learn to leverage standard deviations for strategic trading, and discover why AUD/USD might outshine USD/JPY in today’s market conditions. Get live forex price data on 80+ markets whenever the market is open, and research 30+ years of historical data. EUR/USD is referred to as ‘euro-dollar’ because it’s the pairing of the euro – the currency of 19 European countries – and the US dollar. EUR is the currency code for the euro and USD is the currency code for the US dollar.

Our research team runs forex correlations and case studies on everything from inflation to crude oil. Open a live account to get data on your trading with our Trade Analytics tool. Please bear with us as we address this and restore your personalized lists. IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG International Limited receives services from other members of the IG Group including IG Markets Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

IG Group established in London in 1974, and is a constituent of the FTSE 250 index. 1 Based on revenue (excluding FX), published financial statements, February 2024. If your aggregate position is larger than Tier 1, your margin requirement will not be reduced by non-guaranteed stops. octafx review Discover why so many clients choose us, and what makes us a world-leading provider of CFDs. “Both the Nasdaq 100 and the S&P 500 are trading back in positive territory for the year as US inflation unexpectedly slows and China lowers tariffs on US goods”, says Axel Rudolph, Senior Technical Analyst at online trading platform IG. To hide/show event marks, right click anywhere on the chart, and select “Hide Marks On Bars”.